Tuesday 4 October 2016

YOUR AGENT support mandatory Money Protection for letting agents

YOUR AGENT support mandatory Money Protection for letting agents in the wake of the launch of a government consultation on the subject.

"CMP is an entirely sensible measure that protects both the landlord and tenant in the unlikely event that an agent goes into administration or misappropriates a client’s funds" says YOUR AGENT director Rob Lock.

"Calls have been made for the launch of this review for some time so we are very pleased that it has now been announced. It provides an extra, but essential, degree of security for professionals in the industry as letting agents currently hold approximately £2.7 billion in client funds. It’s really important for members, and the wider industry, to come together as one clear, loud voice to call for full, mandatory CMP through this consultation."

The government launched a six week consultation period - closing on October 3 - with an open letter from housing minister Gavin Barwell saying letting agents currently hold approximately £2.7 billion in client funds “but if a letting agent is not covered by client money protection, both the landlord and tenant could stand to lose their money.”

It goes on to say that currently between 60 and 80 per cent of letting agents voluntarily pay a membership fee of £300 to £500 to join a client money protection scheme and this forms part of a central pot of money that can then be used to pay successful claims by landlords and tenants.

YOUR AGENT are member of Client Money Protect (CMP) make sure your agent is protecting your money the way that we protect our clients money.



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